Lithuania's Prime Minister Gintautas Paluckas said on Thursday he would resign, after facing pressure to do so over his business ties to a company owned by his sister-in-law, APA reports citing Reuters.
Paluckas, in a statement, said his "past mistakes" had hindered the work of his government.
"That is why I decided to take the quick and confident decision" to resign, he said in a statement.
Opposition parties in the Baltic country have criticised Paluckas for business dealings, in which a company he co-owns sold electric batteries to another firm owned by his sister-in-law, in a deal financed by a government agency.
Paluckas had in recent weeks denied any wrongdoing.
Last week, his sister-in-law's company said it would decline the funding from the government but denied wrongdoing, saying it made purchases from Paluckas' business following an open tender.
A junior party in Lithuania's government on Wednesday threatened to quit the ruling coalition unless Paluckas resigned, saying his position was untenable.